News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/xwtE3mUyHw
  • Japanese Finance Minister Aso says overall the financial system is stable - BBG
  • Join @DanielGMoss's #Webinar at 10:00 PM ET/3:00 AM GMT for his weekly coverage of trading prep for $AUDUSD in the week ahead. Register here: https://t.co/wi1qabrtHJ https://t.co/jNyYJ2yATp
  • South Korean President Moon Jae-in: - Revised GDP shows swift economic recovery underway - Retail investors have supported the South Korean stocks markets - BBG
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/mAKl7spDmH
  • Wall Street Futures Update: Dow Jones (+0.513%) S&P 500 (+0.628%) Nasdaq 100 (+0.755%) [delayed] -BBG
  • Net exports were the biggest drag on Australia's GDP in over 9 years in Q3, according to data released today. #RBA on tap today, full Q3 #GDP report due Wednesday
  • 🇦🇺 Building Permits MoM Prel (OCT) Actual: 3.8% Expected: -3% Previous: 16.2% https://www.dailyfx.com/economic-calendar#2020-12-01
  • 🇦🇺 Building Permits MoM Prel (OCT) Actual: 3.8% Expected: -3% Previous: 15.4% https://www.dailyfx.com/economic-calendar#2020-12-01
  • 🇰🇷 Markit Manufacturing PMI (NOV) Actual: 52.9 Previous: 51.2 https://www.dailyfx.com/economic-calendar#2020-12-01
Crude Oil Prices May Resume Decline on EIA Report, API Data

Crude Oil Prices May Resume Decline on EIA Report, API Data

2018-05-30 03:30:00
Ilya Spivak, Head Strategist, APAC
Share:

CRUDE OIL & GOLD TALKING POINTS:

  • Crude oil prices hold support despite sweeping risk aversion
  • Monthly EIA report on supply trends, API inventory data due
  • Gold prices tethered as risk-off move brings conflicting forces

Crude oil prices didn’t find lasting traction as risk aversion roiled financial markets. The sentiment-linked WTI benchmark sank as US shares picked up on the negative lead from Europe but follow-through didn’t materialize, with prices swiftly rebounding to close the day little-changed.

Traders may have been leery of overextending on the downside following Friday’s brutal selloff until OPEC and its allies in a production cut scheme settle on a common message. Russia and Saudi Arabia have hinted at relaxing output curbs but other producers (like Ecuador) have voiced opposition to doing so.

Gold prices struggled to find direction as haven-seeking capital flows buoyed the US Dollar and Treasury bonds in tandem, weighing on yields. That put the yellow metal’s appeal as an anti-fiat alternative and its role as benchmark non-interest-bearing asset in conflict.

API INVENTORY DATA, MONTHLY EIA REPORT IN FOCUS

Looking ahead, crude oil volatility may be reanimated as API inventory flow data comes across the wires. The outcome will be judged against expectations of a slight 500k barrel outflow projected to appear in official DOE statistics published Thursday.

A monthly report on supply trends form the EIA is also due. That may show that swelling US output is already poised to undermine OPEC-led supply cut efforts as they are. Layering that on top of any Saudi- and Russia-led production increase might be seen as justifying an even lower oil price level, reviving selling pressure.

In the meantime, gold might remain anchored to familiar levels. An updated set of first-quarter US GDP figures and the Fed Beige Book survey of regional economic conditions are unlikely to materially alter the outlook on monetary policy. Meanwhile, stock futures are pointing to a pause in the risk-off drive.

See our quarterly crude oil price forecast to learn what will drive the trend through mid-year!

GOLD TECHNICAL ANALYSIS

Gold prices remain stuck between the outer layer of trend support set from December 2016, now at 1290.05, and a falling trend line guiding the move lower from mid-April (1302.13). A daily close below support exposes the 1260.80-66.44 area next. Alternatively, a reach of resistance at sees the next major inflection point at 1323.60, a former support level.

Gold price chart - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices continue to consolidate at support in the 66.22-67.36 zone having reversed lower as expected. A daily close below it opens the door for a test of trend support set from June 2017, now in the 64.21-65.51 area. The first layer of significant resistance remains at 69.53, the April 19 high.

Crude oil price chart - daily

COMMODITY TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES